ANGEL B.

APUYAN | BSBA2-2C
The owner of Big Burger Restaurant wants to determine the unit cost associated with their
10,000 sales of burgers for January 201A. The following variable expenses per burger are
available:

Burger Patty P5.50

Bread 2.00
Ketchup 0.50
Lettuce 6.00
Mayonnaise 0.50
Total Variable Cost per unit P14.50 per burger

The fixed expenses of Big Burger Restaurant are the following:

Labor P5,500
Rent 2,500
Insurance 500
Advertising 2,000
Utilities 4,800
Total Fixed Cost P15,300

A. Compute the unit cost per burger

SOLUTION:
Total FC
Unit Cost =Total VC per unit+
Total number of sales
15,300
14.50+ =16.03
10,000

15,300/10,000 = 1.53
14.50 + 1.53 = 16.03